Agreed , take the loss and move on. Closed my PUT ratio spreads for a loss as well today...but not as big as yesterday. Any premium writing strategy on the PUT side would have lost, whether it FOTM credit spreads, diagonals, ratio spreads. Even the supposedly safe CTM credit spreads preffered by some would have lost too. As long as you received premium when opened, you would have lost.
I sold more Mar and Apr premium to take advantage of this higher IV environment. My book is currently delta neural, and I will try to keep it neural till expiration. I did get some extra put options at the first panic drop, and this put has increased up to 30% yesterday in value, but it has evaporated today. I didn't close my put spread, and they are currently atm. I had no intention to close it before expiration because of the wide bid ask spread. I believe i will be ok if i can manage my delta and gamma properly.
I believe it was a good move. Your timing is a lot better than me. I opened call spread last week when IV was high, and closed half of it for over 50% profit yesterday. I was trying to manage gamma in the same time getting some juice from the high premium environment.
Well some people I know were at 1350 and below so they were not getting out yet. I am sure they made some moves today.
rally, my put spreads (er2) all untouched and solidly otm; after an er2 8% plus one week correction. net this month 10% plus on my my account. i understand why you are so sarcastic; but for those who have been in this 10 years making good money can you still say it is luck or maybe something else?
Rally does not have anything constructive to say about FOTM spreads and I believe has beaten the dead horse on his opinion so do not bother LOL P.S. I will no doubt be the subject of a comeback personal criticism as opposed to a contributing post to the actual topic at hand... LOL.. j/k
Say what? Man, i thought i was contributing. This is the time to sell the vertical when its worth $5 and vols are still on the high side, not when it was 50 cents ticking at 700bps. Whoever didnt get the point behind my sarcasm, its on them. Grab another beer Norm. LOL